Determinants of solar energy access in urban and rural areas of Ethiopia: implications for equitable climate transitions

Unequal access to electricity between urban and rural areas continues to constrain inclusive development and equitable climate action. This study examines household and community-level determinants of solar energy adoption across Ethiopia by drawing on nationally representative data from the World Bank Ethiopia Socio-Economic Survey Wave 5 (2021–2022) which was collected through a two-stage stratified random sampling. We use a multi-level logistic regression to distinguish within- and between-community determinants, and the Spatial Durbin Error Model to evaluate whether adoption diffuses through peer effects. Our results show clear divergence across settings. In rural areas, adoption is associated with older, male household heads in communities with limited grid access, which reflects need-based uptake. In contrast, in urban areas, adoption is more common among younger and relatively better-resourced residents, which reflects elective investment. Spatial spillovers are minimal, suggesting that institutional programs and market interventions play a stronger role than localized social diffusion. These findings highlight the need for differentiated context-specific strategies that address structural constraints and advance equitable clean energy transitions.